Most Biodiesel Use is Domestic

The Indonesian government promotes biodiesel as an alternative to fossil fuels to support its energy transition efforts. Data from the Ministry of Energy and Mineral Resources (ESDM) shows a steady increase in biodiesel utilization year after year.

In 2018, biodiesel production reached 6.2 million kiloliters (kl), with 3.8 million kl allocated for domestic use and 1.8 million kl for export. This increased to 8.4 million kl in 2019, with 6.4 million kl for domestic use and 1.3 million kl for export.

In 2020, biodiesel production reached 8.6 million kl, with the majority (8.4 million kl) allocated for domestic use. Only 35,800 kl were exported. Production further increased to 10.2 million kl in 2021, with 9.3 million kl allocated domestically.

Exports in 2021 slightly increased from the previous year to 146,900 kl. As of May 2022, production reached 3.4 million kl, with 3.3 million kl allocated domestically and 2,000 kl for export.

Besides domestic use and export, biodiesel production is also allocated for annual storage in storage tanks.

The government uses biodiesel as a means to achieve economic independence through the biodiesel mandate. Since 2014, the government has implemented the B10 program, and the current blend is B30.

This makes Indonesia a pioneer in biodiesel utilization, with the highest blend in the world at 30 percent. According to the Ministry of ESDM, this strategic policy has economic and environmental impacts.

"In 2021, the economic value of the B30 implementation exceeded USD 4 billion, and successfully reduced Greenhouse Gas (GHG) emissions by 25 million CO2e," said Minister of ESDM Arifin Tasrif at a conference on Thursday, March 24, 2022.

Currently, the Ministry of ESDM is developing sustainability indicators for biodiesel through the Indonesia Bioenergy Sustainable Indicator (IBSI). This includes indicators related to economic, social, and environmental aspects.